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Udyam Registration for Manufactures vs. Service providers

uploadadmin by uploadadmin
24 June 2025
in Business
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Udyam registration is essential for all entrepreneurs in India. The Udyam registration is a government registration for micro, small and medium enterprises in India. The Udyam registration is assigned the unique identification number and manufacturing establishment involved in goods and production quality for registration under the manufacturing segment of Udyam registration. The service providers are gaining the acknowledgement and access to various benefits and government initiatives.

Table of Contents

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  • In the manufacturer segment, who is eligible for Udyam registration?
    • Advantages of Udyam registration for manufacturers:
  • What is meant by service provider?
    • Advantages of Udyam registration for service providers: 
  • Mandatory documents and details:
  • Advantages of udyam registration: (Manufacturers and service providers):
  • Compliance and updating: ( for both)
  • Conclusion:

In the manufacturer segment, who is eligible for Udyam registration?

Any commercial entity engaged in the production, assembly, fabrication or processing of tangible goods qualifies as a manufacturing entity, such as:

  • Chemicals and plastic manufacturing.
  • Automobile parts manufacturing.
  • Food processing industries.
  • Furniture manufacturing.
  • Textile units.
  • Steel fabrications.
  • Handicraft and artisan units. 

Advantages of Udyam registration for manufacturers:

  • Loans without the need for collateral under CGTMSE.
  • Reduced interest support on banking loans.
  • Protection from payment postponement.
  • Discount on buying machinery.
  • Involvement in the public procurement process.
  • Financial Assistance for ISO Certificate.
  • Directed lending to private sectors.
  • FEE subsidies for intellectual property registration.

What is meant by service provider?

A service provider is any enterprise that delivers non-physical goods or professional services like:

  • IT services.
  • Consulting services.
  • Education and training services.
  • Healthcare services.
  • Travel services.
  • Marketing and advertising agencies.
  • Repair and maintain services.
  • Logistics and transport services.
  • Freelanced and self-employed. 

Advantages of Udyam registration for service providers: 

  • Eligibility for government programmes and financial support.
  • Quick loan approvals and low interest rates.
  • Professional access to government tenders.
  • Tax breaks and legal benefits.
  • Legal support for late payments under MSME law.

Mandatory documents and details:

  • Aadhaar number of proprietor/ partner/director.
  • PAN of the business.
  • GSTnumber.
  • Business activity.
  • Investment and turnover details.

Advantages of udyam registration: (Manufacturers and service providers):

  • Loans without collateral under CGTMSE.
  • Government subsidy programs at central and state level.
  • Advantage in government bidding.
  • Help with late payments.

Compliance and updating: ( for both)

  • Update your details every year using your tax and GST returns.
  • Keep your eligibility based on turnover and investment levels.

 

You Can Apply for Udyam Annexure Download Through Udyam Portal

Conclusion:

The manufacturers and service providers are both different in nature of business, but the Udyam registration process eligibility criteria and benefits are the same. The fundamental variance is related to the asset in use (plant and machinery versus equipment) and the type of enterprise activity selected upon registration. While in the Udyam registration process, carefully select the business type, like manufacturer and service providers. Manufacturers and service providers are both accessing the government schemes through the Udyam registration. And if you are running any micro, small, and medium enterprises, the Udyam registration is essential. It helps you grow in your business.

 

uploadadmin

uploadadmin

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